Wockhardt Exits US Generics Business with Voluntary Liquidation of Two Subsidiaries
By Shishta Dutta | Published at: Jul 11, 2025 06:34 PM IST
Mumbai, July 11, 2025 — Wockhardt Ltd (NSE: WOCKPHARMA, BSE: 532300) announced that it has started voluntary liquidation procedures for its two US-based companies, Wockhardt USA LLC and Morton Grove Pharmaceuticals Inc., marking a significant strategic shift. With the decision, the business will completely exit the US generic medicines market on July 11, 2025, in order to concentrate on developing novel drugs and biologics.
Strategic Shift: Exit from Commoditised US Generics
Wockhardt’s US generics business has been posting sustained losses over the years. In FY25 alone, it reported a loss of nearly USD 8 million. Following a comprehensive review, the company concluded that continued operations in this commoditised segment would hinder its long-term innovation-focused strategy.
According to the company’s release, this exit allows Wockhardt to streamline resources toward two core innovation areas:
- New Antibiotic Drug Discovery, where the company holds a globally recognised leadership position.
- Biologicals in Insulin, targeting unmet needs in diabetes care with advanced technology solutions.
Liquidation Details Under Chapter 7
Wockhardt has filed for voluntary liquidation of:
- Morton Grove Pharmaceuticals Inc. (Delaware, USA)
- Wockhardt USA LLC (Delaware, USA)
Both are wholly-owned step-down subsidiaries under Wockhardt Bio AG. The liquidation process has been initiated under Chapter 7 of the U.S. Bankruptcy Code and is expected to be completed within 15 months from the application date.
Financial Snapshot of Affected Units (FY25):
| Subsidiary | Income Contribution | Net Worth Contribution |
|---|---|---|
| Morton Grove Pharmaceuticals | Nil | 4.6% (primarily goodwill) |
| Wockhardt USA LLC | 3% | Negative |
Source: Annexure A, SEBI Circular Compliance Disclosure, Page 4 of the filing
No agreement for sale or slump sale is involved, and the liquidation is not considered a related party transaction or covered under any scheme of arrangement (Regulation 37A of SEBI LODR does not apply).
Strategic Commentary
“By stepping away from the commoditized generics space, Wockhardt is positioning itself to create long-term value through innovation, scientific excellence, and sustainable profitability,” the company stated in its release.
The company reaffirmed its commitment to pharmaceutical operations across India, the UK, Ireland, and other markets, which continue to demonstrate strong performance.
About Wockhardt
Wockhardt Ltd is a research-based global pharmaceutical and biotech firm listed on NSE and BSE. The company is a pioneer in new antibiotic drug discovery and is the only global firm to receive US FDA QIDP (Qualified Infectious Disease Product) status for six anti-bacterial programmes addressing Gram-positive and Gram-negative “superbugs”. It employs ~2,900 professionals across 27 nationalities and earns 77% of its revenue from international markets.
REF: https://nsearchives.nseindia.com/corporate/WOCKPHARMA_11072025160517_Coveringletterpressreleasevoluntaryliquidation.pdf
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